SVP Global Textiles Ltd is pleased to share an update on business operations amid the current geopolitical situation.
Plant operation: – India and Oman – Manufacturing operations in Jhalawar (Rajasthan) and Sohar Free Trade Zone (Oman) are operating at peak capacity.
Rise in cotton prices (raw material): – There is a huge spike in cotton (major raw material) prices due to the current geopolitical situation and the decline in domestic cotton production. This season, the price of cotton has risen from Rs. 63,000 per candy to highs of Rs. 94,000 per candy. Yarn prices have not been able to keep pace with rising cotton prices, which could put pressure on margins for all spinners. However, the situation is improving now and yarn prices are also catching up.
Order book position:- The order book position of the company is strong and to date stands at around Rs. 3000 crores which equates to 23 months of sales. The company has recently been accredited by ISO-9001, Global Organic Textile Standard (GOTS) and Organic Content Standard (OCS), BCI, OEK-TEX, STD 100, Fair Trade, SUPIMA Gold and approved supplier of Zara and Ikea.
Commenting on company performance, Maj Gen (Dr) OP Gulia, SM, VSM (retd) CEO said: “The current geopolitical situation and its subsequent impact on the prices of cotton and other inputs, as well as the delay in logistics and exports, have had a negative impact on the textile industry as a whole and it could short-term pressure on margins. SVP Global, however, is better equipped in manufacturing and advanced technology with AI and IOT capabilities. Despite a challenging business environment, the company feels at ease in carrying out business transactions.